Gamuda active, falls 12.50% as govt starts talks to buyout highways

KUALA LUMPUR (Feb 25): Gamuda Bhd shares fell 12.50% in active trade this morning after the government begun talks with Gamuda Bhd to negotiate the buyout of four highway concessions.

*A toll on highway concessionaires?

*Government in talks with Gamuda to acquire four highway concessions

At 9.14am, Gamuda lost 38 sen to RM2.66 with 7.329 million shares traded.

MIDF Amanah Investment Bank Bhd Research said the impact to Gamuda’s earnings is net negative, as the move will result in earnings vacuum.

“However, we opine that it is too early to ascertain the impact, as we are still short on details.

“On that account, our forecasts on the group earnings remain unchanged until further development on the acquisitions,” it said in a report today.

— theedgemarkets.com

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